NEW ORLEANS (WVUE) – Recent flooding in New Orleans from Hurricane Francine highlighted the extensive damage water can do to homes. But in recent years, homeowners have voiced concerns about rising flood insurance premiums.
“I think all insurance prices have gone up, not just flood insurance,” Katherine Drezek said.
As the cost of flood insurance continues to increase for residents of Louisiana and the nation, Louisiana Sen. Bill Cassidy released a new report on the National Flood Insurance Program (NFIP).
“We put it together, and as you can see from all the references, my staff did a great job,” Cassidy told FOX 8.
The NFIP is administered by FEMA, and Cassidy’s report criticizes FEMA’s approach.
“What we found is that FEMA is ignoring the affordability aspect. They have a dual mission: to have programs that are affordable but actuarially meaningful. We need to,” Cassidy said. “They’re so focused on covering costs like debt from the levee failures during Katrina that they ignore affordability.”
Mr Cassidy warned that rising flood insurance costs could have serious consequences.
“As a result, it is estimated that 1 million policyholders will cancel their insurance due to higher premiums. In the New Orleans metropolitan area alone, 52,000 people have already seen their premiums reduced,” Cassidy said. spoke. “The risk would then be concentrated among fewer people, leading to what is known as an actuarial death spiral, causing mortality rates to rise further.”
Cassidy is calling on Congress to reform the financially strapped program.
“Our proposal provides premium relief for low-income policyholders. We strive to make the program more affordable, sustainable, and responsible. The goal is to have this completed by the end of the next legislative session,” Cassidy said.
The report recommends that Congress pass comprehensive reforms to the NFIP, including:
We will cap premium increases, provide means-tested discounts, strengthen mitigation measures and simplify the claims process. Demand that FEMA reevaluate its pricing practices and prioritize affordability. Rollback Risk Assessment 2.0 and prevent similar changes without Congressional approval. Ensure FEMA takes feedback into account. Input was received from state and local stakeholders to make flood insurance more affordable.
Flood insurance premiums are rising amid Louisiana’s widespread property insurance crisis, which is causing premiums to skyrocket. FOX 8 spoke to homeowners who currently don’t have insurance on their property.
“We don’t have insurance, we don’t have anything,” Donna Nunnally said.
See a spelling or grammar error in your story? Click here to report it. Please also include a heading.
Subscribe to the Fox 8 YouTube channel.
Copyright 2024 WVUE. Unauthorized reproduction is prohibited.
